1997 (6) TMI 226 - AT - Customs

Appellate Tribunal classifies Honda Kerosene Pumps as capital goods, overturns import license requirement.

The Appellate Tribunal ruled in favor of M/s. Asian Power Controls Ltd., determining that the imported Honda Kerosene Pumps were not consumer goods but ... IMPORT Issues:1. Classification of imported goods as consumer goods and eligibility for OGL import under 1992-97 EXIM Policy.2. Interpretation of the definition of consumer goods and capital goods.3. Application of relevant case laws and rulings in determining the nature of the imported goods.Analysis:1. The case involved M/s. Asian Power Controls Ltd. appealing against an Order-in-Original regarding the classification of Honda Kerosene Pumps as consumer goods. The appellant claimed the goods were not consumer goods and were freely importable under the EXIM Policy. The Commissioner of Customs held the goods as consumable durables, requiring an import license. A penalty was imposed, leading to the appeal.2. The appellant argued that the pumps were not consumer goods but industrial machinery, citing specifications and catalog details showing industrial applications. They contended that the pumps fell under a specific heading and were freely importable under the EXIM Policy. The definition of consumer goods and capital goods was crucial in determining the nature of the imported pumps.3. The dispute centered on whether the imported Honda Kerosene Pumps qualified as consumer goods under the EXIM Policy. The appellant relied on the catalogue specifications and Chartered Engineer's certificate to support their claim that the pumps were capital goods for industrial use, not consumer goods. The Tribunal analyzed the relevant provisions of the EXIM Policy and considered case laws to conclude that the pumps were not consumer goods but capital goods, thus allowing the appeal and quashing the impugned order.This detailed analysis highlights the key arguments, legal interpretations, and conclusions drawn by the Appellate Tribunal in the judgment regarding the classification of the imported goods and their eligibility for OGL import under the EXIM Policy.